In a bid to avert the “costly” economic consequences of a reenacted budget, Budget Secretary Benjamin E. Diokno said the economic managers will recommend to the President the calling of a special session in Congress sometime next week.
Diokno said this is the first time they will be making the recommendation under the Duterte administration, as the passage of the budget for the first two years went unhampered.
On Wednesday the House of Representatives held its last session day for the year.
“…There’s a possibility that the President may call for a special session sometime next week to finish the budget,” said Diokno, who also chairs the Development Budget Coordination Committee. “We will recommend to the President that he call for a special session.”
The budget chief could not say when they will formally make the recommendation but said it could happen within the week.
This, as he warned anew of the substantial economic impact of the government operating under a reenacted budget for the full year of 2019.
Citing the latest estimates from the National Economic and Development Authority (Neda), Diokno said a reenacted budget could have a GDP growth impact of from -1.1 to -2.3 percent in 2019.
This may cause the government to miss its growth target of 7 to 8 percent for next year.
“This means GDP growth in 2019 could be between 4.7 percent and 5.9 percent instead of 7 percent,” he said.
According to Department of Budget and Management (DBM) estimates, the reenacted budget will also reduce disbursements by around P220 billion next year.
As many as 600,000 jobs may be lost in sectors such as construction, public administration and defense, wholesale and retail trade, land transport and education, the Neda said.
“And worse, it is estimated that 200,000 to 400,000 individuals could be pushed into poverty following the contraction of the budget,” he said.
Grilling
Diokno faced the House of Representatives on Tuesday for a Question Hour, amid the issues surrounding the proposed 2019 budget.
House Majority Leader Rolando G. Andaya Jr., in a privilege speech, accused a DBM official of favoring a contractor that “bagged billions of pesos worth of Department of Public Works and Highways projects not only in Sorsogon and Catanduanes, but also multimillion projects of other government agencies in Metro Manila and other provinces in almost all parts of the country.”
The plenary has also approved Andaya’s motion to issue a subpoena against a certain Consolacion T. Leoncio, sole proprietor of CT Leoncio Trading and Construction.
During Question Hour, Minority Leader Danilo E. Suarez also asked Diokno about P2.8-billion projects in Casiguran and Sorsogon, where his daughter’s in-laws are elected officials.
Suarez revealed that Diokno’s daughter is married to the son of Sorsogon Vice Gov. Ester Hamor and Casiguran Mayor Edwin Hamor, who are both running in the 2019 elections.
However, Diokno told Suarez he’s not aware of the project, and as family, they “do not talk about projects.” He said none of his family members, as well as friends, are involved whenever he makes decisions as budget secretary.
Moreover, Diokno also told reporters on Wednesday that it is not part of the DBM’s job to implement the projects and choose the contractors.
“We do not talk to the contractors. We talk to the department heads. That is our clientele, the department heads. And so we do not implement projects at this level,” he said.
Despite these issues surrounding the proposed 2019 budget, Malacañang also said on Wednesday it still maintains full trust and confidence in Diokno.
“Mr. Diokno is known to be the ‘Mr. No’. Meaning, he is a man of integrity. So when he says he’s not involved, I believe him. Unless you show me, as a lawyer, competent evidence to the contrary; the presumption is he is a man of competence and integrity,” Presidential Spokesman and Chief Presidential Legal Counsel Salvador S. Panelo said in a briefing.